Tips on the components of a Term Sheet - The Prathibha Sastry Show

Tips on the components of a Term Sheet

A term sheet primarily is a document containing terms and conditions related to investment process and business of a start-up Through this Investors and founders agree on various details like Business valuation, purchase terms, dilution, payment procedure etc. Besides it also contains details from investor stakes to board meetings and Esops. Components of a term sheet give us a bigger picture of founders, Investors and business dynamic between them.

What are the components of a term sheet? How to decide whether that information is too much or too little? Are term sheets legally binding? How term sheets help start-ups to have smoother workflow? Valuation of the enterprise pre and post money, How much would the investor invest in and therefore the dilution.

Our mentor Sharda Balaji walks us through the details of the components of a term sheet. Sharda is primarily a lawyer and CS, and founder of law firm NovoJuris. Apart from that she also donned roles of legal counsel, founder, angel investor, Independent director and trustee.  

This video is part of Start-up 101 series, containing a wide range of Q AND As. We have got you covered with basics in form of FAQ s answered by Founders and CEOs themselves. Also we have unravelled almost everything from investing, hiring to valuation. Our goal is to provide A to Z solutions to these hurdles and boost confidence of novice entrepreneurs.

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